Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
Summary of Non-consolidated Financial Results
for the Six Months Ended June 30, 2021
[Japanese GAAP]
August 13, 2021 | |||
Company name: | WealthNavi Inc. | ||
Listing: | Tokyo | ||
Securities code: | 7342 | URL: http://www.wealthnavi.com | |
Representative: | Representative Director and CEO | Kazuhisa Shibayama | |
Contact: | Director, CFO | Gaku Hirose | (TEL) +81-3-6632-4911 |
Scheduled date to file quarterly Securities Report: | August 13, 2021 | ||
Scheduled date to commence dividend payments: | - | ||
Preparation of supplementary materials on quarterly financial results: Yes | |||
Holding of quarterly financial results presentation meeting: | Yes (for institutional investors and analysts) |
(Millions of yen with fractional amounts rounded down, unless otherwise noted)
1. Non-consolidated financial results for the six months ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
(1) Non-consolidated operating results (cumulative) | (Percentages indicate year-on-year changes) | |||||||||||||||
Operating revenue | Net operating | Operating profit | Ordinary profit | Net profit | ||||||||||||
revenue | ||||||||||||||||
Six months ended | million yen | % | million yen | % | million yen | % | million yen | % | million yen | % | ||||||
June 30, 2021 | 1,954 | - | 1,944 | - | (175) | - | (176) | - | (178) | - | ||||||
June 30, 2020 | - | - | - | - | - | - | - | - | - | - | ||||||
Basic earnings | Diluted earnings | |||||||||||||||
per share | per share | |||||||||||||||
Six months ended | Yen | Yen | ||||||||||||||
June 30, 2021 | (3.91) | - | ||||||||||||||
June 30, 2020 | - | - |
Note 1. As the Company has not prepared non-consolidated financial statements for the six months ended June 30, 2020, earnings per share for the six months ended June 30, 2020 and the percentage indicating year-on-year changes are not shown for the six months ended June 30, 2021.
2. Diluted earnings per share is not depicted because, although potential shares exist, the basic loss per share is reported for the quarter.
- Non-consolidatedfinancial position
Total assets | Net assets | Equity-to-asset ratio | |
As of | million yen | million yen | % |
June 30, 2021 | 17,509 | 7,411 | 42.3 |
December 31, 2020 | 15,378 | 6,916 | 45.0 |
(Reference) Equity: As of June 30, 2021 | 7,411 million yen |
As of December 31, 2020 | 6,916 million yen |
2. Cash dividends
Annual dividends per share | ||||||
First quarter- | Second quarter- | Third quarter- | Fiscal year-end | Total | ||
end | end | end | ||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | |
- | 0.00 | - | 0.00 | 0.00 | ||
December 31, 2020 | ||||||
Fiscal year ending | - | 0.00 | ||||
December 31, 2021 | ||||||
Fiscal year ending | - | 0.00 | 0.00 | |||
December 31, 2021 (Forecast) | ||||||
Note: Revisions to the forecast | of cash dividends most recently announced: None |
3. Non-consolidated earnings forecast for the fiscal year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)
(Percentages indicate year-on-year changes)
Operating revenue | Operating profit excluding advertising expenses | |||||
Fiscal year ending | million yen | % | million yen | % | ||
4,316 | 71.5 | 1,076 | 586.2 | |||
December 31, 2021 | ||||||
Note 1. Operating profit excluding advertising expenses is the sum of the operating profit and advertising expenses. |
2. Revisions to the earnings forecast most recently announced: None
- Notes
- Adoption of accounting treatment specific to the preparation of quarterly non-consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies in accordance with changes in accounting standards, etc.: No
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of shares issued (common shares)
- Number of shares issued at the end of the period (including treasury shares)
As of June 30, 2021 | 45,593,749 shares |
As of December 31, 2020 | 44,967,649 shares |
(ii) Number of treasury shares at the end of the period | |
As of June 30, 2021 | 4 shares |
As of December 31, 2020 | - shares |
(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2021 | 45,526,577 shares |
Six months ended June 30, 2020 | - shares |
(Note) Because the Company did not prepare non-consolidated quarterly financial statements for the six months ended June 30, 2020, no data is provided for average number of shares issued during that term.
- Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
- Explanation of the proper use of earnings forecasts, and other special matters
The forward-looking statements such as earnings forecasts contained in these materials are based on information currently available to the Company and certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize such statements. Because of variable factors, actual results may differ from the forecast figures. For information regarding assumptions upon which the Company's results forecasts are based and notes regarding the use of forecasts, please refer to page 3 of the attached materials 1. Qualitative information regarding quarterly results (3) Explanation regarding non-consolidated forecasts and forward-looking statements.
Attached Materials | ||
Index | ||
1. Qualitative information regarding quarterly results ......................................................................................................... | 2 | |
(1) | Explanation of operating results ................................................................................................................................. | 2 |
(2) | Explanation of financial position................................................................................................................................ | 2 |
(3) | Explanation of cash flows .......................................................................................................................................... | 3 |
(4) | Explanation of non-consolidated financial results forecasts and other forward-looking statements........................... | 3 |
2. Quarterly financial statements and significant notes thereto............................................................................................ | 4 | |
(1) | Quarterly balance sheets............................................................................................................................................. | 4 |
(2) | Quarterly statement of income ................................................................................................................................... | 6 |
(3) | Quarterly statement of cash flows .............................................................................................................................. | 7 |
(4) | Notes to quarterly financial statements....................................................................................................................... | 8 |
(Notes on premise of going concern) ........................................................................................................................... | 8 | |
(Notes on significant changes in the amount of shareholders' equity) ......................................................................... | 8 |
1
1. Qualitative information regarding quarterly results (1)Explanation of operating results
During the first half of the current fiscal year, expectations for economic recovery and growth increased throughout the global economy due to the progress in vaccinations against the novel coronavirus in major countries. This has led to the gradual lifting of behavioral restrictions as the number of newly infected people decreases and has also led to the implementation of ongoing accommodative monetary policies. In the domestic economy, a third emergency declaration was issued in April as the number of infected people increased again, and the sense of economic stagnation intensified accordingly.
In light of this environment, the Company has actively expanded the functions of its fully automated robo-advisor "WealthNavi," increased the number of its alliance partners, hired human resources to strengthen its business base, and engaged in advertising activities such as TV commercials, all to achieve continuous business growth.
Regarding the expansion of the functions of "WealthNavi," the Company began offering "Robo-NISA" as part of its direct business in February. "Robo-NISA" is a feature leveraging the NISA's tax exemption merits while enabling the wealth management of long-term investment with a globally diversified portfolio through "WealthNavi." In June, the Company also started offering "Robo-NISA" for "WealthNavi for SBI Securities," a service provided in partnership with SBI Securities Co., Ltd., and "Hokkoku Omakase Navi," a service provided in partnership with The Hokkoku Bank, Ltd.
In addition, the Company has been promoting the expansion of its alliance partners, and in June, the Company concluded business alliance agreements with The Taiko Bank, Ltd. and The Chukyo Bank, Ltd. The Company plans to offer a managed account service with a hybrid of online and face-to-face support.
As a result, as of June 30, 2021, there were 287 thousand users and assets under management totaled 485.2 billion yen. Consequently, the operating revenue was 1,954 million yen, and the net operating revenue after deducting financial expenses of
9 million yen from the total operating revenue was 1,944 million yen for the six months ended June 30, 2021. In addition, the selling, general, and administrative expenses cost was 2,119 million yen, resulting in an operating profit excluding advertising expenses of 521 million yen, an operating loss of 175 million yen, an ordinary loss of 176 million yen, and a quarterly net loss of 178 million yen for the six months ended June 30, 2021.
The Company only operates in a single segment being the robo-advisor business, and thus, no segment information is reported.
(2)Explanation of financial position
(Assets)
Total assets as of June 30, 2021 were 17,509 million yen, up 2,131 million yen from the end of the previous fiscal year. This increase is mainly due to the increase of 3,200 million yen in cash segregated as deposits for customers and a corresponding decrease in cash and deposits of 1,784 million yen.
(Liabilities)
Total liabilities as of June 30, 2021 were 10,097 million yen, up 1,635 million yen from the end of the previous fiscal year. This increase was mainly due to a 1,605 million yen increase in the amount of deposits received associated with the increase in funds received from customers, etc.
(Net assets)
Total net assets as of June 30, 2021 were 7,411 million yen, up 495 million yen from the end of the previous fiscal year. This increase was caused by an increase in share capital of 336 million yen from a third-party allotment related to a secondary offering through an over-allotment etc., an increase in legal capital surplus of 336 million yen, and a decrease in retained earnings of 178 million yen due to the recording of a net loss.
2
(3) Explanation of cash flow
Cash and cash equivalents (hereinafter, "net cash") as of June 30, 2021 totaled 8,915 million yen, a decrease of 1,173 million from the end of the previous fiscal year. Cash flows and sources thereof during the six months period ending June 30, 2021 were as follows.
(Cash flows from operating activities)
Net cash used in operating activities was 1,794 million yen. This is mainly due to 3,200 million yen increase in cash segregated as deposits for customers and 1,605 million yen increase in deposits received.
(Cash flows from investing activities)
Net cash used in investing activities was 38 million yen. This is mainly due to acquisition of intangible assets in the amount of 29 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities was 660 million yen. This is mainly due to 660 million yen in proceeds from issuance of new shares due to a third-party allotment related to a secondary offering through an over-allotment.
(4) Explanation of non-consolidated financial results forecasts and other forward-looking statements
There is no change to the financial results forecast for the year-ending December 31, 2021 announced on May 14, 2021.
3
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WealthNavi Inc. published this content on 13 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2021 06:10:08 UTC.